Britain is pushing for a real terms budget cut after MPs rejected government proposals to accept an inflationary rise.
However Austria became the latest country to threaten to veto the deal yesterday. It wants to make sure agriculture subsidies are not cut.
Deputy chancellor Michael Spindelegger even said strong countries like Austria should be prepared to pay more into the pot.
“One cannot have a low unemployment rate and great economic data, without it having consequences on payments,” he told an Austrian broadcaster. “We want a fund for the training of skilled workers. If all former rebates went into that, we could get a million young people off the streets and finance their training.”